Odisha to tweak industrial policy, pitch for fresh investments post Covid19

While the state government had drafted a fresh IPR for 2020, the policy statement needs revision to keep in sync with a changed geopolitical and business ambiance post pandemic

Odisha plans to recast its Industrial Policy Resolution (IPR) before it lapses in August, aiming to get investments when the coronavirus outbreak has been brought under control.

While the state government had drafted a fresh IPR for 2020, the policy statement needs revision to keep in sync with a changed geopolitical and business environment.  The policy is expected to have tax concessions and employment-linked incentives.

The state government has begun negotiations with willing investors in Japan and South Korea. Both Japanese and Korean firms gravitate to states or regions that offer a cluster ecosystem where they can operate, Odisha has identified two such exclusive enclaves. Separately, the state government has scheduled a video conference with interested US-based companies on May 12.

“For Korean companies, we have 300 acres ready at Infovalley on Bhubaneswar’s outskirts. Likewise, the state government has alienated 1200 acres of encumbrance free land at Dhenkanal for the potential Japanese investments. Odisha’s forte lies in providing encroachment free land as well as plug & play office space”, said a senior state government official.

Two South Korean companies- a chemicals manufacturer and a specialty steelmaker have shown interest to invest in Odisha. The state government is also pulling all stops to attract companies contemplating to pivot away their manufacturing bases from China.

Despite the Covid-19 cloud, the state government had recently approved fresh investments valued at over Rs 9000 crore. On April 20, the High-Level Clearance Authority (HLCA) chaired by Chief Minister Naveen Patnaik approved two high-value investments, the proposal by Rungta Mines Ltd to ramp up steelmaking capacity from 0.9 million tonnes per annum (mtpa) to 2.85 mtpa at a cost of Rs 7836.9 crore and Dhunseri Ventures Ltd’s plan to install maleic anhydride manufacturing unit with an investment of Rs 1013.29 crore.

State Level Single Window Clearance Authority (SLSWCA) gave the go-ahead to a proposal by Niren Kumar Anand for setting up a footwear manufacturing unit with an envisaged capacity of one million pieces at an investment of Rs 62.44 crore and promising employment for 620 people.

The SLSWCA also leared three other investments, a proposal by Kashvi International to set up 1.2 million tonne iron ore beneficiation plant at a cost of Rs 55.23 crore, Purosteel India Pvt Ltd’s proposal to set up a manufacturing unit for tubes & pipes PVD coating and finished sheets & profiles at an investment of Rs 53.42 crore and Rs 80-crore investment proposal by Odisha Carriers & Trade to set up three logistics parks cum fulfillment centres.

The SLSWCA headed by the Chief Secretary is empowered to clear investments of up to Rs 1000 crore. Investments valued beyond are recommended to the HLCA.